State-owned Oil and Pure Fuel Company (ONGC) on Sunday mentioned it has opened one other properly on its flagship deep-sea undertaking in Krishna Godavari basin in Bay of Bengal, which is able to assist increase manufacturing of crude oil and pure fuel.
In January, ONGC had began producing oil, which is transformed into fuels like petrol and diesel in refineries, from the KG-DWN-98/2 or KG-D5 block.
“On August 24, 2024, ONGC marked a major milestone by beginning manufacturing from its fifth oil properly within the Block KG-DWN-98/2 Cluster-2 asset,” the agency mentioned in a inventory trade submitting. Nonetheless, it didn’t state how a lot the brand new properly was producing.
Union Minister for Petroleum and Pure Fuel Hardeep Singh Puri hailed the feat as ‘a significant milestone’.
“A significant milestone achieved in oil & fuel manufacturing by ONGC in India’s bold journey in the direction of power self-sufficiency. Fuel begins to circulate by way of a newly laid 20 inches sub-sea pipeline from offshore wells/ Floating manufacturing, storage and offloading vessel (FPSO) in Krishna Godavari deep water block to onshore terminal,” he wrote in a publish on X (formally twitter).
The state-run oil and fuel explorer additionally efficiently commissioned its fuel export line from the offshore-to-onshore terminal.
Manufacturing targets
The block, which sits subsequent to Reliance Industries’ KG-D6 block within the KG basin, has numerous discoveries which have been clubbed into clusters.
Positioned 35-km off the coast of Andhra Pradesh in water depths starting from 300-3,200 metres, the discoveries within the block are divided into Cluster-1, 2 and three. Cluster 2 is being put to manufacturing first.
Based on unique plans, oil manufacturing from Cluster-2 ought to have begun by November 2021, however was delayed because of the Covid-19 pandemic.
After that, ONGC set Might 2023 as the primary Cluster-2 oil manufacturing deadline however prolonged it a number of instances with the final deadline introduced being December 2023. Oil began flowing from January 7, 2024.
On the time of begin of manufacturing in January, ONGC had acknowledged that peak or most manufacturing from the sphere is anticipated to be 45,000 barrels of oil per day (bopd) and over 10 million normal cubic meters per day (mmscd) of fuel, which is used to make fertilisers, generate electrical energy, became CNG to be used as gas.
In an investor name on August 6, ONGC Director (Finance) Vivek Tongaonkar had acknowledged that the agency was producing 12,000 bopd and 0.4 mmscmd of fuel from the jap offshore block.
This manufacturing was from 4 wells and yet one more properly was deliberate to be opened in August, he mentioned. The envisaged peak of 45,000 bopd was seemingly in subsequent quarters, Tongaonkar mentioned. Fuel output is anticipated to achieve 6 mmscmd by March 2025.
ONGC has drilled 26 wells on the sphere. Out of those, 13 are oil producing and 7 fuel producing. The agency expects to open all 13 oil producing wells plus six fuel wells by the tip of March.
KG-D5 block discoveries
Within the KG-D5 block, Cluster-1 consists of three discoveries. FDPs (discipline improvement plans) of two discoveries have been accepted in 2019. This undertaking is presently within the improvement stage. In Cluster-3, there’s one ultra-deep water fuel discovery which might be the second deepest hydrocarbon discovery on this planet, when monetised. The FDP is scheduled to be submitted by January 2026.
ONGC had proposed a FDP for Cluster-2 in April 2018, with an estimated capital expenditure of $5.07 billion and operational expenditure of $5.12 billion over a discipline lifetime of 16 years.
The Cluster-2 discipline is split into two blocks particularly 2A and 2B, which as per the unique funding choice have been anticipated to provide 23.52 million metric tonnes of oil and 50.70 billion cubic metres (bcm) of fuel over the lifetime of the sphere.
Cluster 2A was estimated to include reserves of 94.26 million tonnes of crude oil and 21.75 bcm of related fuel, whereas Cluster 2B is estimated to host 51.98 bcm of fuel reserves.
Cluster 2A was anticipated to provide 77,305 barrels of oil per day (bopd) and related fuel at a fee of three.81 million metric normal cubic metres per day (mmscmd) over 15 years. Cluster 2B was anticipated to provide free fuel of 12.75 mmscmd from eight wells and has a 16-year life.
However ONGC later revised the output downwards 45,000 bopd of oil and as much as 2.5 mmscmd from Cluster 2A and round 9 mmscmd from Cluster 2B.
